High River Gold Mines Ltd.
TSX : HRG

High River Gold Mines Ltd.

March 17, 2009 08:30 ET

High River Gold Reports Updated Zun-Holba and Irokinda NI 43-101 Compliant Reserve and Resource Estimates

TORONTO, ONTARIO--(Marketwire - March 17, 2009) - High River Gold Mines Ltd. ("High River" or the "Company") (TSX:HRG) would like to report the results of a National Instrument 43-101 ("NI 43-101") compliant gold reserve and resource estimate, as of December 31, 2007, on the Zun-Holba and Irokinda Gold Mines, completed by MICON International Limited ("MICON"). MICON audited and converted Russian classified non NI 43-101 compliant "reserves" into NI 43-101 compliant mineral resource and mineral reserve estimates.

For the two mines in total, on a 100% basis, Proven and Probable Reserves declined 20%, Measured and Indicated Resources (including Reserves) declined 19%, and Inferred Resources increased 67%.



-----------------------------------------
Zun-Holba (100%)
-----------------------------------------
Category Contained Gold
(ozs)
-----------------------------------------
2007 2006
-----------------------------------------
Proven & Probable 250,000 302,000
-----------------------------------------
Measured & Indicated(1) 273,000 323,000
-----------------------------------------
Inferred 120,000 106,000
-----------------------------------------

-----------------------------------------
Irokinda (100%)
-----------------------------------------
Category Contained Gold
(ozs)
-----------------------------------------
2007 2006
-----------------------------------------
Proven & Probable 184,000 240,000
-----------------------------------------
Measured & Indicated(1) 196,000 257,000
-----------------------------------------
Inferred 60,000 3,000
-----------------------------------------
(1) Measured & Indicated includes Proven & Probable


High River notes that:

- The receipt of these technical reports for Zun-Holba and Irokinda, dated October 2008 and September 2008 respectively, were delayed due to financial difficulties experienced by the Company over the last 6 months.

- Mining continues at Zun-Holba and Irokinda at historical rates, and exploration has replaced the majority of reserves mined out during 2008.

- Due to Russian regulations regarding Russian classified non NI 43-101 compliant "reserves", MICON's audit and conversion to NI 43-101 compliant reserve estimates incorporated a gold price of US $550/oz. Therefore, the NI 43-101 compliant reserve estimates could be higher if they incorporated a higher gold price.

- MICON, in its technical reports, concluded that there is significant potential for extending the mine lives of Zun-Holba and Irokinda based on the following:

-- Known mineralization continues to be open along strike in both directions and at depth, and the mineralization does not appear to be constrained by any major geological features (except for the host fracture system at Irokinda, and some cross-cutting faults at Zun-Holba offsetting mineralization).

-- Both mines have enjoyed "great success" in converting resources to reserves in the past, and could continue to do so in the future.

-- For both mines, there are a number of exploration targets currently identified both adjacent and non-adjacent to existing mine development.

Reserve and Resource Estimates



Zun-Holba Gold Mine (100%)
--------------------------

---------------------------------------------------------
Proven and Probable Reserves(i)
Reserve ------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------
Proven 525,000 10.7 181,000
---------------------------------------------------------
Probable 196,000 11.0 69,000
---------------------------------------------------------
Total 721,000 10.8 250,000
---------------------------------------------------------
(i) includes applicable dilution (at zero grade) and mining losses


----------------------------------------------------------
Measured and Indicated Resources(ii)
Resource ------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
----------------------------------------------------------
Measured 416,400 14.9 198,000
----------------------------------------------------------
Indicated 153,600 15.3 75,000
----------------------------------------------------------
Total 570,000 14.9 273,000
----------------------------------------------------------
(ii) includes undiluted Proven and Probable Reserves


---------------------------------------------------------------
Inferred Resources
Resource ------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------
Total Inferred 288,000 13.0 120,000
---------------------------------------------------------------



Irokinda Gold Mine (100%)
-------------------------

---------------------------------------------------------
Proven and Probable Reserves(i)
Reserve ------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------
Proven 370,700 11.81 141,000
---------------------------------------------------------
Probable 126,100 10.70 43,000
---------------------------------------------------------
Total 496,800 11.53 184,000
---------------------------------------------------------
(i) includes applicable dilution (at zero grade) and mining losses


----------------------------------------------------------
Measured and Indicated Resources(ii)
Resource ------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
----------------------------------------------------------
Measured 301,000 15.50 150,000
----------------------------------------------------------
Indicated 95,000 14.92 46,000
----------------------------------------------------------
Total 396,000 15.36 196,000
----------------------------------------------------------
(ii) includes undiluted Proven and Probable Reserves


---------------------------------------------------------------
Inferred Resources
Resource ------------------------------------------------
Category Tonnage (t) Gold Grade (g/t) Contained Gold (oz)
---------------------------------------------------------------
Total Inferred 121,000 15.39 60,000
---------------------------------------------------------------


Notes to the Reserve and Resource Estimates:

1. The Qualified Persons responsible for the preparation of these NI 43-101 reserve and resource estimates are William J. Lewis, B.Sc., P. Geo. (APEGB # 20333, APEGM #20480, NAPEGG #1450, APGO #1522), a senior geologist with MICON, and Robert J. Leader, P.Eng., a senior mining engineer with MICON.

2. The effective date of each NI 43-101 compliant reserve and resource estimate is December 31, 2007.

3. Details of the key assumptions, parameters, and methods used to estimate the above mineral resources and reserves are as follows:

Resources



---------------------------------------------------------
Mine block cut-off grade (g/t) min. mining width (m)
---------------------------------------------------------
Zun-Holba 15.5 1.0
---------------------------------------------------------
Irokinda 6.8 1.10
---------------------------------------------------------


Reserves

Mineral reserves were derived directly from the NI 43-101 compliant resources using the following parameters:



-----------------------------------------------------
Mine gold price dilution mining losses
-----------------------------------------------------
Zun-Holba(1) US $550/oz 23.1% to 49.6% 6.3% to 8.4%
-----------------------------------------------------
Irokinda(2) US $550/oz 14% to 57% 3.0% to 11.8%
-----------------------------------------------------
(1) dilution and mining loss parameters vary by mining level
(2) dilution and mining loss parameters vary by vein


4. In MICON's opinion, there are no significant environmental, permitting, legal, title, taxation, socio-political, marketing or other issues which would materially affect the mineral reserve or resource estimates.

5. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

About High River

High River is a gold company with interests in producing mines, mines under development, and advanced exploration projects in Burkina Faso and Russia.

FORWARD LOOKING STATEMENTS

This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, High River cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause High River's actual results, event, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although High River has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. Any forward-looking statements are made as of the date of this release, and High River assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.

Contact Information

  • High River Gold Mines Ltd.
    Dan Hrushewsky
    Vice President Investor Relations
    (416) 947-1440
    (416) 360-0010 (FAX)
    Email: info@hrg.ca
    Website: www.hrg.ca